Methods and apparatus for calculating optimal social security election decisions

ABSTRACT

In some embodiments, a non-transitory processor-readable medium stores code representing instructions to cause a processor to receive, from a user, an input of at least one value associated with financial information of a married couple, and calculate, using the at least one value, an average indexed monthly earnings (AIME) value and a primary insurance amount (PIA) value for each individual from the married couple. The code represents instructions to cause the processor to calculate, using the AIME value or the PIA value for each individual from the married couple, a set of Social Security election outcomes using each election strategy from a set of election strategies for each age combination from a set of age combinations for the married couple. The code further represents instructions to cause the processor to present the set of Social Security election outcomes to the user.

CROSS-REFERENCE TO RELATED APPLICATION

This application is a continuation of U.S. patent application Ser. No.13/310,120, filed Dec. 2, 2011, and entitled “Methods and Apparatus forCalculating Optimal Social Security Election Decisions,” which claimspriority to and the benefit of U.S. Provisional Patent Application No.61/418,933, filed Dec. 2, 2010, and entitled “Methods and Apparatus forCalculating Optimal Social Security Election Decisions,” each of whichis incorporated herein by reference in its entirety.

BACKGROUND

Embodiments described herein relate generally to systems for calculatingestimated Social Security benefits, and more particularly, to methodsand apparatus for determining optimal Social Security election decisionsfor married couples.

Some known Social Security calculators calculate estimated SocialSecurity benefits for single users. These Social Security calculatorstypically apply a “break-even” analysis to make a decision for when toelect Social Security for a user. Such Social Security calculators,however, operate only on election strategies designed for single users,and do not provide the user with election strategies available tomarried couples.

Some other known financial planning software tools can analyze theimpact of different Social Security benefit elections for marriedcouples. Such known software tools, however, typically analyze theelections on a scenario by scenario basis, in which a user inputs a setof election ages for a married couple and the program calculates theresult of those election ages for the married couple. As such, thesesoftware tools do not provide a “landscape” view of possible options andstrategies for electing Social Security.

Accordingly, a need exists for methods and apparatus that calculate andcompare the Social Security election results across various electionstrategies and for all combinations of election ages for a marriedcouple, thus to determine the best Social Security election strategy forthe unique circumstances of the married couple.

SUMMARY

In some embodiments, a non-transitory processor-readable medium storescode representing instructions to cause a processor to receive, from auser, an input of at least one value associated with financialinformation of a married couple, and calculate, using the at least onevalue, an average indexed monthly earnings (AIME) value and a primaryinsurance amount (PIA) value for each individual from the marriedcouple. The code represents instructions to cause the processor tocalculate, using the AIME value or the PIA value for each individualfrom the married couple, a set of Social Security election outcomesusing each election strategy from a set of election strategies for eachage combination from a set of age combinations for the married couple.The code further represents instructions to cause the processor topresent the set of Social Security election outcomes to the user.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a schematic diagram that illustrates communication devices incommunication with a host device via a network, according to anembodiment.

FIG. 2 is a schematic diagram of a host device configured to perform aSocial Security optimization analysis for a user, according to anembodiment.

FIG. 3 illustrates assumptions and projected Social Security electionbenefits for a married couple, according to an embodiment.

FIG. 4 is a selectable user-interface illustrating the optimal resultsfor each combination of election ages across election strategies for amarried couple, according to an embodiment.

FIG. 5 is a flow chart illustrating a method of performing a SocialSecurity optimization analysis, according to an embodiment.

FIG. 6 is a flow chart illustrating a method of performing a SocialSecurity optimization analysis, according to another embodiment.

DETAILED DESCRIPTION

In some embodiments, a non-transitory processor-readable medium storescode representing instructions to cause a processor to receive, from auser, an input of at least one value associated with financialinformation of a married couple. In some embodiments, the at least onevalue associated with financial information of the married couple caninclude historical earning information for the married couple. In someembodiments, the at least one value associated with financialinformation of the married couple can include at least one of historicalSocial Security covered earnings, an expected inflation rate, an averagewage index (AWI) growth rate, a life expectancy for at least oneindividual from the married couple, or a discount rate.

The code can represent instructions to cause the processor to calculate,using the at least one value, an average indexed monthly earnings (AIME)value and a primary insurance amount (PIA) value for each individualfrom the married couple. In some embodiments, the code to cause theprocessor to calculate the PIA value can include code to calculate thePIA value for an individual from the married couple for each year inwhich that individual is eligible to receive Social Security benefits.

The code can represent instructions to cause the processor to calculate,using the AIME value or the PIA value for each individual from themarried couple, a set of Social Security election outcomes using eachelection strategy from a set of election strategies for each agecombination from a set of age combinations for the married couple. Insome embodiments, the set of age combinations can include each SocialSecurity electable age for a first individual from the married couplepaired with each Social Security electable age for a second individualfrom the married couple. In some embodiments, the code to cause theprocessor to calculate the set of Social Security election outcomes caninclude code to cause the processor to calculate each Social Securityelection outcome from the set of Social Security election outcomes bycalculating each component from a set of components of a total familybenefit using one of a present value of an annuity (PVA) function or anet present value (NPV) function, and summing the set of components todetermine the total family benefit for that Social Security electionoutcome.

The code can also represent instructions to cause the processor topresent the set of Social Security election outcomes to the user. Insome embodiments, the code represents instructions to cause theprocessor to select an optimal result from each election strategy fromthe set of election strategies. The code to cause the processor topresent can include code to cause the processor to present the optimalresult for at least one election strategy from the set of electionstrategies to the user.

In some embodiments, the code can further represent instructions tocause the processor to calculate a monetary difference between a presentvalue of a first Social Security election outcome from the set of SocialSecurity election outcomes and a present value of a second SocialSecurity election outcome from the set of Social Security electionoutcomes. Furthermore, the code can represent instructions to cause theprocessor to present the monetary difference to the user.

In some embodiments, an apparatus includes an input module, an electionstrategy calculation module, and a presentation module. The input modulecan be configured to receive, from a user, an input of at least onevalue associated with financial information of a married couple. In someembodiments, the input module can be configured to receive, from theuser, an input of at least one of an AIME value or a PIA value. Theelection strategy calculation module can be operatively coupled to theinput module and configured to calculate a set of Social Securityelection outcomes using each election strategy from a set of electionstrategies for each age combination from a set of age combinations forthe married couple using the at least one value, the AIME value, or thePIA value. The set of age combinations can include each Social Securityelectable age for a first individual from the married couple paired witheach Social Security electable age for a second individual from themarried couple. The presentation module can be operatively coupled tothe election strategy calculation module and configured to present theset of Social Security election outcomes to the user. In someembodiments, the election strategy calculation module can be configuredto select an optimal result from each election strategy from the set ofelection strategies. The presentation module can be configured topresent the optimal result for at least one election strategy from theset of election strategies to the user.

In some embodiments, the apparatus can further include an AIMEcalculation module, a PIA calculation module, and a comparison module.The AIME calculation module can be configured to calculate the AIMEvalue based on the at least one value associated with the financialinformation of the married couple. The PIA calculation module can beconfigured to calculate the PIA value based on the at least one valueassociated with the financial information of the married couple. In someembodiments, the PIA calculation module can be configured to calculatethe PIA value for an individual from the married couple for each year inwhich that individual is eligible to receive Social Security benefitsusing the at least one value associated with the financial informationof the married couple. The comparison module can be configured tocalculate a monetary difference between a present value of a firstSocial Security election outcome from the set of Social Securityelection outcomes and a present value of a second Social Securityelection outcome from the set of Social Security election outcomes, andthe presentation module can be configured to present the monetarydifference to the user.

FIG. 1 is a schematic diagram that illustrates communication devices 180in communication with a host device 120 running a Social Securityoptimization system, via a network 170, according to an embodiment.Specifically, the communication devices 150 and 160 are configured to beoperatively coupled to and communicate with the host device 120 via thenetwork 170. The network 170 can be any type of network (e.g., a localarea network (LAN), a wide area network (WAN), a virtual network, atelecommunications network, etc.) implemented as a wired network and/orwireless network. In some embodiments, for example, the communicationdevices 150 and 160 can be personal computers operatively connected tothe host device 120 via an Internet service provider (ISP) and theInternet (e.g., network 170). Although only the communication devices150 and 160 are shown in FIG. 1, the host device 120 can be configuredto be operatively coupled to and communicate with more than twocommunication devices via the network 170.

The host device 120 can be any type of device configured to send dataover the network 170 to and/or receive data from one or more of thecommunication devices (e.g., the communication device 150, 160). In someembodiments, the host device 120 can be configured to function as, forexample, a server device (e.g., a web server device), a storage device,a network management device, a data repository, and/or the like.

As shown in FIG. 1, the host device 120 includes a processor 122 and amemory 124. The processor 122 of the host device 120 can be any suitableprocessing device configured to run and/or execute the Social Securityoptimization system. For example, the processor 122 can be configured toexecute Social Security optimization processes and/or methods inresponse to receiving a signal from a communication device 180, asdescribed in further detail herein. More specifically, as described infurther detail herein, the processor 122 can be configured to executemodules, functions and/or processes to provide a user (e.g., a marriedcouple) of a communication device 180 with a Social Security electionanalysis. In some embodiments, the processor 122 can be a generalpurpose processor, a Field Programmable Gate Array (FPGA), anApplication Specific Integrated Circuit (ASIC), a Digital SignalProcessor (DSP), and/or the like.

The memory 124 can be, for example, a random access memory (RAM), amemory buffer, a hard drive, a database, an erasable programmableread-only memory (EPROM), an electrically erasable read-only memory(EEPROM), a read-only memory (ROM) and/or so forth. In some embodiments,as described in detail with respect to FIGS. 2, 5 and 6, the memory 124can store instructions to cause the processor 122 to execute modules,processes and/or functions associated with the Social Securityoptimization system.

In some embodiments, the memory 124 of the host device 120 can act as adata repository. In such embodiments, the data associated with theSocial Security optimization modules, functions and/or processes can bestored in the memory 124 of the host device 120. When a user (e.g., amarried couple, a financial advisor, etc.) wishes to view dataassociated with a specific married couple via, for example, thecommunication device 150 or 160, the host device 120 can send the datato the communication device 150 or 160 in response to a signalrequesting the data being received from the communication device 150 or160.

Further, in some embodiments, the memory 124 of the host device 120 canstore account information associated with users authorized to access thedata stored in the memory 124. Each user can be authorized to accesscertain portions of data stored in the memory 124. In some embodiments,for example, a premium client (i.e., a client that has purchased apremium package) can be authorized to access and view the outcomes ofall possible Social Security election strategies; while a basic client(i.e., a client that has only purchase a basic package) can beauthorized to access and view only the outcome of an optimal SocialSecurity election strategy. In such embodiments, for example, the hostdevice 120 can store, within the memory 124, a username and passwordassociated with a user, extent of authority of the user (e.g., accessrights), election outcomes for various election strategies associatedwith the user, and/or the like. Alternatively, such information can bestored in a database (not shown in FIG. 1) within or operatively coupledto the host device 120.

Each of the communication devices 180 can be, for example, a computingentity (e.g., a personal computing device such as a desktop computer, alaptop computer, etc.), a mobile phone, a personal digital assistant(PDA), and/or so forth. Although not shown in FIG. 1, in someembodiments, each of the communication devices 180 can include one ormore network interface devices (e.g., a network interface card)configured to connect the communication devices 180 to the network 170.In some embodiments, the communication devices 180 can be referred to asclient devices.

As shown in FIG. 1, the communication device 160 has a processor 162, amemory 164, and a display 166. The memory 164 can be, for example, arandom access memory (RAM), a memory buffer, a hard drive, and/or soforth. The display 166 can be any suitable display, such as, forexample, a liquid crystal display (LCD), a cathode ray tube display(CRT) or the like. Similar to communication device 160, thecommunication device 150 has a processor 152, a memory 154, and adisplay 156. In other embodiments, the communication devices 150, 160can include other types of output device(s) instead of or in addition tothe displays 156, 166. For example, the communication devices 150, 160can include an audio output device (e.g., a speaker), a tactile outputdevice, and/or the like.

In some embodiments, a web browser application can be stored in thememory 164 of the communication device 160. Using the web browserapplication, the communication device 160 can send data to and receivedata from the host device 120. Similarly, the communication device 150can include a web browser application. In such embodiments, thecommunication devices 150 and 160 can act as thin clients. This allowsminimal data to be stored on the communication devices 150 and 160. Inother embodiments, the communication devices 150 and 160 can include oneor more applications specific to communicating with the host device 120during a Social Security optimization process. In such embodiments, thecommunication devices 150 and 160 can download the application(s) fromthe host device 120 prior to participating in the optimization process.

As discussed above, the communication devices 150 and 160 can send datato and receive data from the host device 120 associated with the SocialSecurity optimization system. In some embodiments, the data sent betweenthe communication devices 150, 160 and the host device 120 can beformatted using any suitable format. In some embodiments, for example,the data can be formatted using extensible markup language (XML),hypertext markup language (HTML) and/or the like.

In some embodiments, one or more portions (e.g., the processor 122) ofthe host device 120 and/or one or more portions (e.g., the processor152, 162) of the communication devices 180 can include a hardware-basedmodule (e.g., a digital signal processor (DSP), a field programmablegate array (FPGA)) and/or a software-based module (e.g., a module ofcomputer code to be executed at a processor, a set of processor-readableinstructions that can be executed at a processor). In some embodiments,one or more of the functions associated with the host device 120 (e.g.,the functions associated with the processor 122) can be included in oneor more such modules (see, e.g., FIG. 2). In some embodiments, one ormore of the functions associated with the communication devices 180(e.g., functions associated with processor 152 or processor 162) can beincluded in one or more modules similar to the modules shown anddescribed with respect to FIG. 2.

In some embodiments, one or more of the communication devices 180 can beconfigured to perform one or more functions associated with the hostdevice 120, and vice versa. For example, in some embodiments, at least aportion of the Social Security optimization system can be executed atthe communication device 160. In other embodiments, the entire SocialSecurity optimization system can be executed at the communication device160. In such embodiments, the processor 162 can execute instructionsassociated with the Social Security optimization system stored local tothe communication device 160 in the memory 164. In such embodiments, thecommunication device 160 need not be in communication with the hostdevice 120 to execute the Social Security optimization system.

FIG. 2 is a schematic diagram of a host device 200 configured to performa Social Security optimization analysis for a user 290, according to anembodiment. The host device 200 can be structurally and functionallysimilar to the host device 120 shown and described with respect toFIG. 1. Although not shown in FIG. 2, the host device 200 can include amemory and a processor, which are similar to the memory 124 and theprocessor 122 shown and described with respect to FIG. 1.

As shown in FIG. 2, the host device 200 includes an input module 260, anAIME calculation module 240, a PIA calculation module 250, an electionstrategy calculation module 220, a comparison module 270, and apresentation module 230. Although not shown in FIG. 2, the modules canbe stored in, for example, the memory within the host device 200 andexecuted by, for example, the processor of the host device 200. Each ofthe modules can be a hardware-based module (e.g., a DSP, a FPGA), asoftware-based module (e.g., a module of computer code to be executed atthe processor, a set of processor-readable instructions that can beexecuted at the processor), or a combination of hardware and softwaremodules.

In some embodiments, each module shown in FIG. 2 can be in directcommunication with each other module. In other embodiments, each moduleneed not be in direct communication with each other module. For example,the input module 260 is in direct communication with the AIMEcalculation module 240, the PIA calculation module 250 and the electionstrategy calculation module 220, while might not be in directcommunication with the presentation module 230. In some embodiments,each module hosted in the host device 200 can be operatively coupled toeach other module hosted in the host device 200.

The modules shown in FIG. 2 can function as a Social Securityoptimization system for a user, such as the user 290. That is, themodules can be configured to collectively perform a Social Securityoptimization analysis for the user 290. The user 290 can be any personthat can operate and/or interact with the host device 200. In someembodiments, the user 290 can be a representative of a married couple.For example, the user 290 can be an individual from the married couple,a relative (e.g., child) of the married couple, or a financial advisorhired by the married couple. As used herein, the higher-earning spousefrom the married couple is referred to as the primary earner, and thelower-earning spouse is referred to as the secondary earner.

In some embodiments, as described in detail herein, the user 290 canprovide information associated with the married couple to the hostdevice 200, and receive and/or view Social Security election outcomesfor the married couple that are produced by the host device 200 based onthe provided information associated with the married couple. In someembodiments, the user 290 can interact with the host device using acommunication device similar to the communication device 180 shown anddescribed with respect to FIG. 1. In some embodiments, the user 290 canenter the information associated with the married couple to the SocialSecurity optimization system using, for example, a keypad, a touchscreen, a mouse, or any other suitable input means. In some embodiments,the user 290 can receive or view the Social Security election outcomesfor the married couple using, for example, a monitor, a speaker, aprinter, or any other suitable output means.

The input module 210 can be configured to receive input values from theuser 290, shown as signal 201 in FIG. 2. The input values received fromthe user 290 can include data regarding the married couple. In someembodiments, the input values can include data and/or informationassociated with each individual from the married couple, such as, forexample, name, age, historical Social Security covered earnings, lifeexpectancy, life expectancy adjustment (increase or decrease from astandard, predetermined life expectancy), etc. In some embodiments, theinput values can include data and/or information associated with themarried couple, such as, for example, discount rate, expected inflationrate, expected average wage inflation, AWI growth rate, etc.Furthermore, in some embodiments, the input values received from theuser 290 can include at least one value associated with financialinformation of the married couple. Such financial information can be,for example, historical Social Security covered earnings, expectedinflation rate, expected wages, and/or the like, for an individual orboth spouses of the married couple.

FIG. 3 illustrates assumptions and projected Social Security electionbenefits for a married couple Dick and Jane, according to an embodiment.The table 310 illustrates the input values associated with the marriedcouple. As shown in the table 310 of FIG. 3, data and informationassociated with each individual from the married couple (i.e., Dick orJane) can include, for example, at least name, date of birth, gender,life expectancy, life expectancy adjustment, and/or full retirement agefor the individual; data associated with the married couple (i.e., Dickand Jane) can include, for example, at least an assumed inflation and areal rate of return. Furthermore, in some embodiments, more or lessinformation than those items shown in the table 310 can be received froma married couple and used in the Social Security optimization processfor the married couple. For example, in some embodiments, historical andexpected earnings of Dick and/or Jane can be received. For anotherexample, information associated with other non-Social Security taxedemployment can be received. Based on the input values received from Dickand Jane, a Social Security optimization analysis can be performed forthe married couple Dick and Jane.

Returning to FIG. 2, the AIME calculation module 240 can be configuredto calculate one or more AIME values for each individual from themarried couple based on the input value (carried by the signal 201)received from the user 290. In order to calculate the AIME values, theAIME calculation module 240 can be configured to receive data and/orinformation associated with the married couple, which can be used tocalculate the AIME values, from the input module 260. The data receivedfrom the input module 260 at the AIME calculation module 240 is carriedby signal 205 as shown in FIG. 2.

In some embodiments, in calculating the AIME values for each individualfrom the married couple, earnings for the individual can be indexed tothe year that individual turns a certain age, such as age 60. The AWInumber for that year can be divided by the AWI numbers for prior years,and the results can be included in a table of factors. The factor foreach year can then be applied to the earnings for that year to produce atable of present value of past earnings for that individual from themarried couple.

The PIA calculation module 250 can be configured to calculate one ormore primary insurance amount (PIA) values for each individual from themarried couple based on the input value (carried by the signal 201)received from the user 290. Similar to the AIME calculation module 240,in order to calculate the PIA values, the PIA calculation module 250 canbe configured to receive data and/or information associated with themarried couple, which can be used to calculate the PIA values, from theinput module 260. The data received from the input module 260 at the PIAcalculation module 250 is carried by signal 206 as shown in FIG. 2. Insome embodiments, the PIA calculation module 250 can receive thecalculated AIME values from the AIME calculation module 240, shown assignal 211 in FIG. 2.

In some embodiments, the PIA calculation module 250 can be configured tocalculate the PIA value for each individual from the married couple foreach year or month (e.g., ages equal to or greater than 62) in whichthat individual is eligible to receive Social Security benefits. Such aPIA value can be calculated using, for example, appropriate or projectedformula bend-points, the input values associated with the individualthat are received from the user 290, and/or the calculated AIME valuesreceived from the AIME calculation module 240. For example, the PIA canbe calculated for the year an individual from the married couple turns62 using appropriate or projected formula bend-points. First, the PIAcalculation module 250 can be configured to determine whether thebend-points have been set or need to be projected. If the bend-pointsneed to be projected, the PIA calculation module 250 can be configuredto inflate the AWI number by an expected average wage inflation rate. Insome embodiments, the expected average wage inflation rate can be inputby the user 290. The PIA calculation module 250 can then be configuredto apply the PIA formula to the AIME values to arrive at a benefitamount, for example, 90% up to the first bend, 32% up to the secondbend, and 15% above that.

In some embodiments, several additional benefit values other than thePIA values that can be potentially used in later stages of the SocialSecurity optimization process can be calculated. For example, presentand future values of each spouse's benefit based on his or her ownearnings record can be calculated, including any applicable reductionsand/or credits for early or delayed claiming. For another example, theexcess spousal benefit values at each whole-year election age whenspousal benefits are to be coordinated with benefits under the spouse'searnings record can be calculated. For yet another example,spousal-only-benefits for each whole year election age for each spousecan be calculated, assuming a restricted application was filed and thespousal benefit was the only benefit being claimed. These additionalbenefit values can be used in building present-value benefit componentsfor the married couple.

In some embodiments, such additional benefit values can be calculated atthe election strategy calculation module 220 or the PIA calculationmodule 250. In some other embodiments, alternatively, such additionalbenefit values can be calculated at one or more other modules (not shownin FIG. 2) separate from the modules shown in FIG. 2. In suchembodiments, those modules can receive the input values from the inputmodule 260, calculate the additional benefit values, and then send thecalculated results to the election strategy calculation module 220.

The election strategy calculation module 220 can be configured tocalculate a set of Social Security election outcomes using eachapplicable election strategy from a set of election strategies for eachage combination from a set of age combinations for the married couple.The set of Social Security election outcomes can be calculated at theelection strategy calculation module 220 using the input values receivedfrom the user 290 (e.g., carried by signal 202 shown in FIG. 2), one ormore PIA values (e.g., carried by signal 208 shown in FIG. 2), and/orany additional calculated benefit values (not shown in FIG. 2) for eachindividual from the married couple.

In some embodiments, the PIA values associated with the married couplecan be calculated at and provided by PIA calculation module 250 to theelection strategy calculation module 220. In some other embodiments, theinput module 260 can be configured to receive, from the user 290, aninput of the PIA value for the married couple. In such embodiments, thePIA values that are used in calculating the optimal Social Securityelection outcomes for the married couple can be entered by the user 290,rather than calculated at and provided by the PIA calculation module250.

For example, the user 290 can elect to enter a PIA override valueassociated with the married couple, which is an estimated PIA value forthe married couple. Such a PIA override value can allow the SocialSecurity optimization system to skip the AIME calculation and the PIAcalculation, and use the PIA override value in benefit calculations.

In some embodiments, to generate Social Security election outcomes forthe married couple, the election strategy calculation module 220 can beconfigured to first identify the election strategies available for themarried couple. Specifically, the election strategy calculation module220 can be configured to evaluate the specific scenario of the marriedcouple based on the data, information and/or calculated values receivedfrom the input module 260 and/or the PIA calculation module 250. Basedon the evaluation results, the election strategy calculation module 220can determine for each election strategy from a set of electionstrategies whether or not that election strategy is available for themarried couple. In some embodiments, one or a series of logical testscan be used at the election strategy calculation module 220 to determinewhether or not the married couple can use one or more electionstrategies. Such logical tests can be designed based on Social Securityrules that are in effect at the time the election is made. Thus, theelection strategies that are available for the married couple can beidentified at the election calculation module 220.

Next, the election strategy calculation module 220 can be configured tocalculate a set of Social Security election outcomes using eachavailable election strategy from the set of election strategies. Foreach available election strategy from the set of election strategies,lifetime family benefits can be calculated for each age combination froma set of age combinations for the married couple. In some embodiments,such a set of age combinations for a married couple can include bothprimary age combinations for the married couple and (optionally)secondary age combinations for the married couple. Primary agecombinations include a combination of solo electable ages (i.e., an ageat which an individual is eligible to begin receiving Social Securityretirement insurance benefits (RIB) under his or her own earningsrecord) for each individual from the married couple. That is, primaryage combinations can include each solo electable age for a firstindividual from the married couple paired with each solo electable agefor a second individual from the married couple. For example, if theelectable age is considered on an annual basis, the primary agecombinations for the married couple can include solo electable ages62-70 (i.e., 9 years) for each individual from the married couple, thusgenerating a total of 9×9 (i.e., 81) primary age combinations for themarried couple. For another example, if the electable age is consideredon a monthly basis, the set of age combinations for the married couplecan include solo electable ages that range from the 62^(nd) birthday tothe 70^(th) birthday (i.e., 96 months in 8 years) for each individualfrom the married couple, thus generating a total of 96×96 (i.e., 9216)primary age combinations for the married couple.

In some embodiments, for each given primary age combination within eachavailable election strategy, the married couple can have secondary agecombinations. The secondary age combinations can include, for example,other types of election ages at which an individual is eligible toreceive auxiliary Social Security benefits, spousal benefits, and/or thelike. A secondary age combination can include, for example, a spousalelectable age (i.e., an age at which an individual is eligible to beginreceiving spousal benefits or spousal excess under his or her spouse'searning record) for one or both individuals from the married couple.That is, the secondary age combinations can include, for example, eachspousal electable age for a single individual from the married couple;or each spousal electable age for a first individual from the marriedcouple paired with each spousal electable age for a second individualfrom the married couple. In some embodiments, secondary age combinationscan include any other types of election ages that are defined forreceiving auxiliary benefits under the Social Security laws. In someembodiments, for example, secondary age combinations can includeelection ages for a first individual to receive Social Security benefitsas a child or a widow of a second individual based on the secondindividual's earnings record.

In some embodiments, the age combination (including primary andsecondary age combinations) for the married couple can include eachSocial Security electable age (a solo electable age or a spousalelectable age) that is defined, for an individual from the marriedcouple, by the Social Security laws at the time the election is made. Insome embodiments, one or a series of logical tests can be used toeliminate age combinations (including primary and secondary agecombinations) that are precluded by applicable Social Security rules.

After possible age combinations (including primary age combinationsand/or (optionally) secondary age combinations) are determined for themarried couple, the election strategy calculation module 220 can beconfigured to calculate election outcomes of an available electionstrategy for the age combinations. Such a calculation can be performedfor the possible age combinations for each available election strategy.In some embodiments, for example, for a given election strategy, theelection outcomes can be calculated by calculating for the firstavailable age combination under that election strategy then incrementingeach spousal electable age under that strategy by 1 (year or monthdepending on whether an annual or monthly basis is adopted). In someembodiments, whether and/or when an individual from the married couplecan receive spousal benefits or spousal excess depends on the specificscenario of the married couple, and can vary from one scenario toanother. Thus, for a given election strategy, an age combination(including primary and secondary age combinations) for a married couplecan include 9̂2 to 9̂4 combinations (solo electable ages for bothindividuals and (optionally) spousal electable ages for both individualswith 9 whole year options for each electable age) if considered on anannual basis; or 96̂2 to 96̂4 (solo electable ages for both individualsand (optionally) spousal electable ages for both individuals with 96month options (8 whole year) for each electable age) if considered on amonthly basis.

In some embodiments, a grid can be used to represent the intersection ofthe possible primary age combinations that are available to the marriedcouple. If considered on an annual basis, the grid can be, for example,9×9 (age 62-70, or 9 years for each individual from the married couple)that represents all whole-year election age combinations for the marriedcouple. If considered on a monthly basis, the grid can be, for example,96×96 (12 months for each of the 8 years (i.e., the months between anindividual's 62^(nd) and 70^(th) birthday)). For each election agecombination from the set of age combinations, an expected present valueof the lifetime family benefits associated with a given electionstrategy can be calculated for the married couple, assuming restrictedspousal benefits or spousal excess are elected at an optimal time. Thevalue represents the expected value of benefits that would be receivedby the married couple to specified dates of death, based on the givenelection age combination and the given election strategy.

In some embodiments, the present value of the lifetime family benefitsassociated with the married couple for a given election strategy and agiven age combination can be calculated using various present valuefunctions including, for example, an annuity (PVA) function, a netpresent value (NPV) function, or any other suitable function. Forexample, the present value of the lifetime family benefits can becalculated using a linear method. Specifically, future-value cashflowscan be laid out at specified points in time, and then a present valuefunction (e.g., the NPV function) can be performed to calculate thepresent value of the lifetime family benefits based on the cashflows.

In some embodiments, the calculation for the present value of thelifetime family benefits for the married couple can be divided intocalculations for a number of components of the corresponding thelifetime family benefits. If the two spouses from the married couple aredenoted by client 1 and client 2 respectively (i.e., client 1 is thehigher wage earner and client 2 is the lower wage earner), the possiblecomponents of the lifetime family benefits for the married couple caninclude, for example: i) client 1 solo benefit to first death; ii)client 1 spousal benefit to first death; iii) client 2 solo benefit tofirst death; iv) client 2 spousal benefit to first death; v) client 2spousal excess to first death; and vi) survivor benefit to second death.

Next, a present value of each component can be calculated using, forexample, the following three steps: 1) the total number of years whenbenefits are received by the married couple can be calculated for thegiven combination of election ages; 2) the number of years can bemultiplied by the present value of the corresponding individual'sbenefit amount (calculated as an additional benefit value, describedabove); and 3) a present value function (e.g., the PVA function) can beperformed, based on the result from step 2), to calculate the presentvalue of that component. Finally, the present value of each componentcan be summed to produce the expected present value of the lifetimefamily benefits for married couple. By dividing the calculation for thepresent value of the lifetime family benefits for the married coupleinto calculations for multiple components in such a way, the processorand/or memory load required for the calculation can be reduced, thusimproving the efficiency of performing the calculation.

In some embodiments, the election strategy calculation module 220 can beconfigured to calculate the Social Security election outcomes for themarried couple using each election strategy from a set of multipledifferent election strategies. In some embodiments, as described herein,each election strategy can include, for example, 81 possible whole-yearprimary age combinations (i.e., 9 election ages for each individual fromthe married couple), or 9216 possible monthly primary age combinations(i.e., 96 election months for each individual from the married couple).Furthermore, depending on the election strategy, election outcomes canbe calculated for each election strategy for each of multiple secondaryage combinations of the married couple.

In some embodiments, for each election strategy, a set of logical testscan be applied at the election strategy calculation module 220 todetermine whether this election strategy is available for the marriedcouple and if so, at what age combinations. More specifically, thepossible components (e.g., the components i-vi described above) of thelifetime family benefits for the married couple under this electionstrategy can be identified, and then the steps 1-3 (as described above)can be performed to calculate the expected lifetime family benefits foreach election age combination and for the given election strategy. Insome embodiments, the resulting outcomes for each age combination(including primary and secondary age combinations) can be displayed in,for example, a strategy grid associated with the given electionstrategy. Such a process can be repeated for each election strategy fromthe set of election strategies, thus generating a set of strategy grids.

In some embodiments, the set of election strategies can include, forexample, nine election strategies that are described in further detailbelow. Among these nine election strategies, Strategies #1 and #2 assumea single interaction with the Social Security office. In someembodiments, these two election strategies are the base strategies thatmost people fall under, by default. In some or all of the nine electionstrategies, the married couple has the option to make changes on thefollowing four ages associated with the married couple: election age forclient 1's primary benefit, election age for client 1's spousal benefit,election age for client 2's primary benefit, and election age for client2's spousal benefit. For example, the election age for client 1'sprimary benefit can be selected between 62 and 70. For another example,the election age for client 2's spousal benefit can be selected on orafter the year when client 1's primary benefit is elected.

In strategy #1, client 1 and client 2 each files for benefits on theirown earnings records independently. In strategy #2, client 1 files onhis or her own earnings record and client 2 files for all benefits towhich she or he is entitled. In most cases, client 2 will have a benefitunder her or his own earnings record and may have an additional spousalbenefit available under client 1's earnings record. The strategy #2assumes that client 2 will elect once. If no spousal benefit isavailable to client 2 at the time client 2 elects (e.g., due to client 1not yet having elected), no spousal benefit will be included in thisstrategy.

Strategies #3-#9 include multiple interactions with the Social Securityoffice, or a change to an initial benefit election. In some embodiments,these strategies can be designated as “switch strategies” because theyinvolve one spouse or the other electing a limited benefit for a periodof time, then adding or “switching” over to a larger benefit at somepoint in the future. In some embodiments, several basic techniques suchas “restricted application” and “file and suspend” can be potentiallyused to enable these switch strategies, as described in detail below.

The first potential technique can be referred to as “restrictedapplication.” After an individual reaches the normal retirement age, heor she has the option to restrict an application to exclude certainbenefits. If a benefit is excluded, it will continue to build delayedretirement credits. For example, a higher-earning spouse from a marriedcouple, who may want to wait until age 70 to collect his own benefit,may be able to file at 66 for only the benefit available under hisspouse's work record, while still allowing his own benefit to builddelayed retirement credits. Then at age 70, he can switch to his ownbenefit. Alternatively, a lower-earning spouse can restrict his or herapplication to only spousal benefits while continuing to claim delayedcredits on his or her own earnings record.

The second potential technique can be referred to as “file and suspend.”Spousal benefits are not available until the primary earner (i.e., thehigher-earning spouse) has filed for his or her own benefits. The SeniorCitizens' Freedom to Work Act of 2000 allows a worker to earn delayedretirement credits after filing for benefits if he requests that he notreceive benefits during a given period. As a result, a higher-earningspouse can file for benefits, then suspend the benefit, and continue toearn delayed credits. In the process, he or she will have made his orher spouse eligible for spousal benefits under his or her earningsrecord. Strategies #3-9 represent allowable combinations of the twotechniques outlined above.

In strategy #3, client 2 elects his or her solo benefit, and then atsome point in the future adds a spousal benefit. Most often this willoccur when it makes sense for the lower-earning spouse to elect early,but the higher-earning spouse to elect late. As a result, no spousalbenefit is available when client 2 elects, but when client 1 elects inthe future, a spousal benefit becomes available to client 2. Strategy #4modifies strategy #3 by having client 1 to file and suspend, whichallows client 2 to add spousal excess prior to the date at which client1 begins receiving benefits.

In strategy #5, client 2 files for benefits on his or her own record ateach possible age. Client 1 files a restricted application for only heror his spousal benefit under the earnings record of client 2, at thefirst possible date, then at each possible age, elects on his ownrecord. When client 1 elects on her or his own record, spousal excessmay be added to client 2's benefit. Strategy #6 modifies strategy #5 byhaving client 2 file and suspend, which allows client 2 to continue tobuild delayed retirement credits on his or her own record during thetime client 1 is collecting a spousal benefit.

In strategy #7, client 2 files a restricted application for only spousalbenefits under client 1's earnings record for a period of time, and thenswitches to her or his own benefit at a later election age. Strategy #8modifies strategy #7 by having client 1 to file and suspend, whichallows client 1 to continue to build delayed retirement credits duringthe time client 2 is collecting a spousal benefit under client 1'searnings record and building delayed retirement credits on her or hisown record.

Strategy #9 is similar to strategy #2, but is calculated using only thespousal benefit with no adjustment for client 2's earnings record. Thisstrategy has client 1 file and suspend at his or her full retirementage, which allows client 2 to elect a spousal benefit earlier than wouldotherwise be available.

In some embodiments, after the set of Social Security election outcomes(e.g., a present value of the lifetime family benefits) for the marriedcouple are calculated at the election strategy calculation module 220using each election strategy from the set of election strategies foreach age combination from the set of age combinations, the electionstrategy calculation module 220 can be configured to send a portion orall of the resulting Social Security election outcomes to thepresentation module 230, shown as signal 203 in FIG. 2. In some otherembodiments, the election strategy calculation module 220 can beconfigured to send a portion or all of the resulting Social Securityelection outcomes to the comparison module 270, shown as signal 209 inFIG. 2.

In response to receiving the Social Security election outcomes from theelection strategy calculation module 220, the comparison module 270 canbe configured to analyze and/or compare the Social Security electionoutcomes calculated using each election strategy from the set ofelection strategies. Specifically, the comparison module 270 is capableof calculating a monetary difference between the expected present valuesof the lifetime family benefits associated with any pair of electionstrategies from the set of election strategies (for any given agecombination or two different age combinations) for the married couple.The comparison module 270 is also capable of calculating a monetarydifference between the expected present values of the lifetime familybenefits associated with a given election strategy for two different agecombinations of the married couple. Thus, the comparison module 270 cancompare the Social Security election outcomes that are calculated usingtwo different election strategies (for any given age combination or twodifferent age combinations), as well as the Social Security electionoutcomes that are calculated using a given election strategy for twodifferent age combinations, for the married couple.

In some embodiments, the comparison module 270 can select an optimalresult for each election strategy from the set of election strategies.That is, for a given election strategy, the comparison module 270 can beconfigured to determine the age combination (including primary andsecondary age combinations), among the possible age combinations, forthe married couple to receive the highest lifetime family benefits. As aresult, the highest lifetime family benefit that the married couple canpotentially receive (using that election strategy) is the optimal resultfor that election strategy. Furthermore, in some embodiments, thecomparison module 270 can be configured to send the optimal result foreach election strategy to the presentation module 230, via signal 210shown in FIG. 2.

In some embodiments, the comparison module 270 can aggregate the best,the worst, and/or other present values of lifetime family benefitscalculated from the set of election strategies for each primary agecombination (assuming an optimal secondary age combination associatedwith that primary age combination is adopted). Thus, the optimalelection strategy for each primary age combination, which is associatedwith the highest present value of lifetime family benefits for thatprimary age combination, can be identified. In some embodiments, thecomparison module 270 can generate an aggregate strategy grid based onthe identified optimal election strategies and send it to thepresentation module 230 (e.g., via signal 210). The aggregate strategygrid can represent the present values of the lifetime family benefitsreceived by the married couple for each combination of election ages,assuming that the married couple chooses the optimal election strategyfrom the set of election strategies at that primary age combination.Furthermore, at the presentation module 230, such an aggregate grid canbe provided or illustrated to the user 290 in form of, for example, amap, a table, an interactive interface, a report, and/or the like, suchthat the best election option for each primary age combination can bepresented to the user 290.

FIG. 4 is a selectable user-interface illustrating the optimal resultsfor each combination of election ages (i.e., 62-70 for each individual,assuming an optimal secondary age combination is adopted) across theelection strategies (i.e., strategies #1-#9) for a married couplePatrick and Carolyn, according to an embodiment. Both Patrick andCarolyn can elect to receive his or her benefits (e.g., personalbenefits, spousal benefits, etc.) at any year when he or she turns anage between 62 and 70 (including 62 and 70). The monetary value shown inFIG. 4 for any of the 81 primary age combinations is the optimal resultof lifetime family benefits that Patrick and Carolyn can expect toreceive if they elect at the corresponding ages, respectively, using anyof the strategies #1 to #9. For example, if Patrick elects at age 64 andCarolyn elects at age 68, the married couple can expect to receive amaximum lifetime family benefits of $628,402 if they choose the optimalstrategy and spousal claiming ages associated with that primary agecombination. For another example, if Patrick elects at age 68 andCarolyn elects at age 64, the married couple can expect to receive amaximum lifetime family benefits of $655,213 if they choose the optimalstrategy and spousal claiming ages associated with that primary agecombination. As shown in FIG. 4, the married couple can potentiallyreceive a maximum lifetime family benefits of $695,625, using one of thestrategies #1 to #9, when both Patrick and Carolyn elect at age 70 (withoptimal spousal claiming ages that are not shown in FIG. 4). In someembodiments, although not shown in FIG. 4, the optimal election strategyand secondary age combinations (e.g., spousal claiming ages) associatedwith each primary age combination can also be provided to the user.

In some embodiments, the comparison module 270 can select an overalloptimal result (i.e., highest lifetime family benefits) across theelection strategies and the age combinations. Thus, an overall optimalelection strategy across the election strategies and for the agecombinations can be identified. In some embodiments, such an overallresult and the associated overall optimal election strategy can bedetermined by comparing the optimal results obtained for each electionstrategy over the age combinations (including primary and secondary agecombinations as described above). As a result, the outcome that resultsin the highest lifetime family benefits among the optimal resultsobtained for each election strategy over the age combinations (includingavailable primary and secondary age combinations) can be determined asthe overall optimal result across all election strategies and all agecombinations. Similarly, the election strategy associated with the bestoutcome can be determined to be the overall optimal election strategy.

In some other embodiments, such an overall result and the associatedoverall optimal election strategy can be determined by comparing theoptimal results obtained for each age combination across all electionstrategies (as described above). As a result, the best outcome (i.e.,the highest lifetime family benefits) among all the optimal resultsobtained for each age combination across all the election strategies canbe determined as the overall optimal result across all electionstrategies and all age combinations, and the election strategyassociated with the best outcome can be determined as the overalloptimal election strategy. In the example of FIG. 4, the highest outcomeacross all age combinations, $695,625 as shown in FIG. 4, can bedetermined as the overall optimal result across all election strategiesand all age combinations. The optimal election strategy (not identifiedin FIG. 4) for the age combination (e.g., primary age combination (70,70) with an optimal secondary age combination not specified in FIG. 4)can be determined as the overall optimal election strategy.

In some embodiments, the election strategy calculation module 220 andthe comparison module 270 can be configured to collectively calculatethe optimal election outcome and select the optimal election strategyand the associated age combination (including the optimal solo claimingages and/or spousal claiming ages) for the married couple. In theexample of FIG. 3, based on the information of the married couple Dickand Jane that is provided in the table 310, the election strategycalculation module 220 can be configured to calculate various types ofbenefits that Dick and/or Jane can potentially receive. For example, theprojected monthly benefit that Dick or Jane can receive from his or herown earnings record, when he or she elects at a certain age between 62and 70, can be calculated. The results are illustrated in the table 320shown in FIG. 3. Based on the results in the table 320 and other benefitoutcomes (not shown in FIG. 3) calculated at the election strategycalculation module 220, the comparison module 270 can be configured todetermine the optimal election outcome as well as the optimal electionstrategy and the associated age combination for Dick and Jane.

The optimal election strategy for Dick and Jane can be, for example, asfollows. Dick should file a standard application for benefits at hisfull retirement age of 66. This will allow Jane to collect a spousalbenefit under Dick's earnings record. Then, Dick should immediatelyrequest that his benefits be suspended. This will allow him to claimdelayed retirement credits during the time his benefits are suspended.At age 70, Dick should request that his benefits be paid. Hisapproximate monthly benefit would be $3,854.08, as shown in cell 322 inthe table 320.

Meanwhile, Jane should file a restricted application for only herspousal benefit based on Dick's earnings record at Jane's fullretirement age of 66. This will allow Jane to continue to earn delayedretirement credits on her own benefit. Jane's approximate spousalbenefit would be, for example, $1,307.21 (not shown in the table 320).At age 69, Jane should file for her own benefit. Her approximate benefiton her own earnings record would be $2,094.17, as shown in cell 324 inthe table 320.

Overall, the expected lifetime family benefits for Dick and Jane usingthis strategy would be, for example, $715,721.22. This is also theoptimal election outcome for Dick and Jane across all available electionstrategies and for all possible age combinations. In comparison, theexpected lifetime family benefits for Dick and Jane if they elect at theworst primary age combination would be, for example, $621,738.46; theexpected lifetime family benefit for Dick and Jane if both spouses electat age 62 would be, for example, $630,230.84; and the expected lifetimefamily benefit for Dick and Jane if both spouses elect at age 66 wouldbe, for example, $663,277.04.

In some embodiments, for a given primary age combination at which themarried couple anticipates to elect Social Security benefits, thecomparison module 270 can identify the best election strategy (with anassociated secondary age combination) for that primary age combination.The comparison module 270 can further compare the resulting benefitoutcome of that election strategy at that primary age combination to theoverall optimal outcome over other age combinations (e.g., all availableage combinations or a portion of the available age combinations) bydefining an efficiency index. In some embodiments, the efficiency indexcan be defined as the ratio of the expected benefits under a given agecombination to the overall optimal outcome under all age combinations,and can be expressed as a percentage. For example, using the aboveexample having the anticipated primary election age combination for amarried couple as (70, 70), the maximum expected lifetime familybenefits that this married couple can receive (with an optimal electionstrategy and associated secondary age combination for that primaryelection age combination) is $695,625.39 by calculation. On the otherhand, the overall optimal expected lifetime family benefits for thismarried couple, across all election strategies and over all agecombinations, is $756,114.55 by calculation. Thus, the resultingefficiency index is 92% (i.e., the ratio of $695,625.39 to $756,114.55).That is, the anticipated election for the married couple is 92%efficient.

In some embodiments, similar to the election strategy calculation module220, the comparison module 270 can be configured to send a portion orall of the results produced at the comparison module 270 to thepresentation module 230, shown as signal 210 in FIG. 2. The results sentfrom the comparison module 270 to the presentation module 230 caninclude, for example, the optimal election outcomes for each electionstrategy (over one or more age combinations), the optimal electionstrategy and/or outcome for each age combination (across all electionstrategies), the overall optimal election strategy and/or outcome(across one or more election strategies and over one or more agecombinations), etc. Furthermore, in some embodiments, the comparisonmodule 270 can be configured to send the results in the form of, forexample, an aggregate strategy grid, a selectable user-interface (e.g.,as shown in FIG. 4), a table, a report or any other suitable means. Inother embodiments, the presentation module 230 can be configured totransfer the results received from the comparison module 270 and/or theelection strategy calculation module 220 into one or more suitable formsbefore presenting them to the user 290.

The presentation module 230 can be configured to present the SocialSecurity election results received from the election strategycalculation module 220 and/or the comparison module 270 to the user 290,shown as signal 204 in FIG. 2. As described herein, the results receivedfrom the election strategy calculation module 220 and/or the comparisonmodule 270 at the presentation module 230 can include, for example,Social Security election outcomes (e.g., for a given election strategyand a given age combination, for all election strategies and all agecombinations), optimal election strategies (e.g., for a given agecombination, for all age combinations), and/or the like. In someembodiments, the Social Security election results received at thepresentation module 230 can be presented to the user 290 in a suitableform, such as, for example, a report, a graph, a table, a selectableuser-interface, or the like.

In some embodiments, the presentation module 230 can receive a monetarydifference between two present values of two Social Security electionoutcomes. The Social Security election outcomes can be calculated usingtwo different Social Security election strategies, or using a singleSocial Security election strategy for different age combinations. Thepresentation module 230 can be configured to present the receivedmonetary difference to the user 290. In some embodiments, thepresentation module 230 can be configured to present the optimal result(e.g., in terms of an expected value of lifetime family benefits) for atleast one election strategy to the user 290. In some embodiments, thepresentation module 230 can be configured to present a result associatedwith the optimal election strategy, which is selected at the comparisonmodule 270, to the user 290.

In some embodiments, the presentation module 230 can be configured topresent a “what is it worth” calculator to the user 290. Such a “what isit worth” calculator can illustrate, for example, the Social Securityelection outcome (e.g., in terms of an expected value of lifetime familybenefits) associated with a given Social Security election strategy.Thus, the “what is it worth” calculator can indicate to the user 290 themonetary value of the benefits that the married couple can receive ifthey choose that Social Security election strategy.

In some embodiments, the presentation module 230 can be configured topresent a “what is at stake” calculator to the user 290. Such a “what isat stake” calculator can illustrate, for example, the monetarydifference between two Social Security election outcomes (e.g., in termsof expected values of lifetime family benefits) associated with twoSocial Security election strategies, or two Social Security electionoutcomes associated with a single Social Security election strategybeing applied for two different age combinations. In some embodiments,the “what is at stake” calculator can present the monetary differencebetween the overall optimal election outcome and a specific electionoutcome associated with a given election strategy for a given agecombination. In some embodiments, an efficiency index calculated as theratio of the specific election outcome to the overall optimal electionoutcome can be presented. Thus, the “what is at stake” calculator canindicate to the user 290 the monetary difference between, for example,choosing a “good” election strategy and choosing a “bad” electionstrategy for the married couple. In some embodiments, the presentationmodule 230 can be configured to display (e.g., in the “what is it worth”calculator, in the “what is at stake” calculator) the monetary valueassociated with a Social Security election outcome in present valueterms.

In some embodiments, for a given age combination at which the marriedcouple anticipates to elect Social Security benefits, the comparisonmodule 270 can identify the best election strategy and associatedsecondary age combination for that primary age combination. Thecomparison module 270 can further compare the resulting benefit outcomeof that election strategy at that age combination to the overall optimaloutcome over all age combinations by creating an efficiency index. Theefficiency index is defined as the ratio of the expected benefits underthe given age combination to the overall optimal outcome under all agecombinations, and is expressed as a percentage. For example, theanticipated election age combination for a married couple is (70, 70).Based on such a combination of chosen election ages, the maximumexpected lifetime family benefits that this married couple can receiveis $695,625.39 by calculation. On the other hand, the overall optimalexpected lifetime family benefits for this married couple, across allelection strategies and over all age combinations, is $756,114.55 bycalculation. Thus, the resulting efficiency index is 92% (i.e., theratio of $695,625.39 to $756,114.55). That is, the anticipated electionfor the married couple is 92% efficient.

In some embodiments, a portion or all the functionalities of a modulewithin the host device 200 can be performed by another module in thehost device 200. For example, the functionalities of the AIMEcalculation module 240 and/or the PIA calculation module 250 can beincluded in and performed at the election strategy calculation module220. For another example, a first portion of the functionalities of thecomparison module 270 can be included in and performed at the electionstrategy calculation module 220, and a second portion of thefunctionalities of the comparison module 270 can be included in andperformed at the presentation module 230.

Although each module shown in FIG. 2 is included in the host device 200,in some other embodiments, some of the modules can be hosted at acommunication device (e.g., the communication devices 180 in FIG. 1) orsome other device operatively coupled to the host device 200. Forexample, the input module 260 and the presentation module 230 can behosted at the communication device. In such an example, thecommunication device can receive input values from the user 290, andthen send the received values to the host device 200. The communicationdevice can also receive the election outcomes from the host device 200before presenting the outcomes to the user 290. For another example, thecalculation modules (e.g., the election strategy calculation module 220,the AIME calculation module 240, the PIA calculation module 250, and/orthe comparison module 270) can be hosted at a server device operativelycoupled to the host device 200. In this example, the calculations can beperformed at the server device, and the input data and results can betransmitted between the server device and the host device 200.

In some embodiments, one or more of communication devices (e.g., thecommunication devices 180 shown in FIG. 1) can be configured to performone or more functions associated with the host device 120. For example,in some embodiments, at least a portion of the Social Securityoptimization system can be executed at a communication deviceoperatively coupled to the host device 200. In some other embodiments,the entire Social Security optimization system can be executed at such acommunication device. In such embodiments, a processor (e.g., theprocessor 152, 162 in FIG. 1) of the communication device can executeinstructions associated with the Social Security optimization systemstored local to the communication device in a memory (e.g., the memory154, 164) of the communication device. In such embodiments, thecommunication device need not be in communication with the host device120 to execute the Social Security optimization system.

FIG. 5 is a flow chart illustrating a method 500 of performing a SocialSecurity optimization analysis, according to an embodiment. Such amethod can be performed by a processor of a host device (e.g., theprocessor 122 of the host device 120 in FIG. 1) or a processor of acommunication device (e.g., the processor 162 of the communicationdevice 160 in FIG. 1). For example, a host device can have anon-transitory processor-readable medium, which can store coderepresenting instructions to be executed by the processor of the hostdevice. The stored code can comprise code to cause the processor toperform the following operations.

At 502, an input value can be received from a user at the host device.The input value can be associated with financial information of amarried couple. In some embodiments, the input value can includehistorical earning information for the married couple. In someembodiments, the input value can include, for example, historical SocialSecurity covered earnings, an expected inflation rate, an AWI growthrate, a life expectancy for at least one individual from the marriedcouple, or a discount rate.

In the example of FIG. 2, the input module 260 within the host device200 can be configured to receive input values from the user 290. Theuser 290 can be a representative of a married couple. The user 290 canbe, for example, an individual from the married couple, a relative ofthe married couple, or a financial advisor hired by the married couple.The input values received from the user 290 can be associated with themarried couple, such as, for example, historical Social Security coveredearnings of the married couple, an expected inflation rate, an AWIgrowth rate, a life expectancy for one or both spouses from the marriedcouple, a discount rate, etc. Some possible input values associated withthe married couple are illustrated in the table 310 in FIG. 3.

At 504, an AIME value and a PIA value can be calculated, using the inputvalue received from the user, for each individual from the marriedcouple. In some embodiments, the AIME value can be first calculated foreach individual from the married couple, and then the PIA value can becalculated for each individual from the married couple based on theresulting AIME value. In some embodiments, in calculating the PIA valuefor each individual from the married couple, the PIA value for thatindividual for each year in which the individual is eligible to receiveSocial Security benefits can be calculated.

In the example of FIG. 2, the AIME calculation module 240 can beconfigured to receive input values associated with the married couplefrom the input module 260 via signal 205. The AIME calculation module240 can then be configured to calculate an AIME value for eachindividual from the married couple, and further send the resulting AIMEvalue to the PIA calculation module 250 (via signal 211). The PIAcalculation module 250 can be configured to receive input valuesassociated with the married couple from the input module 260 via signal206. Based on the input value received from the input module 260 and/orthe AIME value received from the AIME calculation module 240, the PIAcalculation module 250 can be configured to calculate a PIA value foreach individual from the married couple for each year in which thatindividual is eligible to receive Social Security benefits. The PIAcalculation module 250 can further be configured to send the resultingPIA values to the election strategy calculation module 220 via signal208.

At 506, election strategies that are available for the married couplecan be identified from a set of election strategies. In someembodiments, each election strategy available for the married couple canbe identified. In other embodiments, a subset of the available electionstrategies can be identified. In some embodiments, one or a series oflogical tests can be used to determine whether or not the married couplecan use an election strategy from the set of election strategies basedon data, information and/or calculated values associated with themarried couple. Furthermore, in some embodiments, the age combinations(including primary and/or secondary age combinations) that are availablefor the married couple within each available election strategy can bedetermined from a set of age combinations. In some embodiments, the setof age combinations can include primary age combinations and/orsecondary age combinations. In some embodiments, the primary agecombinations can include each Social Security solo electable age for afirst individual from the married couple paired with each SocialSecurity solo electable age for a second individual from the marriedcouple. The secondary age combinations can include, for example, othertypes of election ages at which an individual is eligible to receiveauxiliary Social Security benefits, spousal benefits, and/or the like.

In the example of FIG. 2, the available election strategies from a setof election strategies for the married couple, as well as the availableage combinations associated with each available age combination from aset of age combinations, can be determined at the election strategycalculation module 220 based on data, information and/or calculatedvalues received from the input module 260 and/or the PIA calculationmodule 250. The set of election strategies can include, for example,strategies #1 to #9 described with respect to FIG. 2. The primary agecombinations included in the set of age combinations can include, forexample, each Social Security electable age of 62 to 70 for a firstindividual from the married couple paired with each Social Securityelectable age of 62 to 70 for a second individual from the marriedcouple.

At 510, Social Security election outcomes can be calculated using eachavailable election strategy from the set of election strategies for eachavailable age combination (including primary combinations and/orsecondary combinations) associated with that election strategy for themarried couple. For each available election strategy and each availableage combination associated with that election strategy, the set ofSocial Security election outcomes can be calculated using the PIA valuefor each individual from the married couple.

In some embodiments, in calculating each Social Security electionoutcome for the married couple, each component from a set of componentsof a total family benefit can be calculated using a present valuefunction. Then, the set of components can be summed to determine thetotal family benefit for that Social Security election outcome. In someembodiments, the present value function can be, for example, a PVAfunction or a NPV function. Additionally, in some embodiments, amonetary difference between present values of two Social Securityelection outcomes can be calculated for the married couple. In someembodiments, an optimal election strategy from the set of electionstrategies can be determined for the married couple.

In the example of FIG. 2, the election strategy calculation module 220can be configured to calculate a set of Social Security electionoutcomes based on the input values received from the input module 260(via signal 202) and the PIA values received from the PIA calculationmodule 250 (via signal 208). In some embodiments, the set of SocialSecurity election outcomes calculated at the election strategycalculation module 220 can include Social Security election outcomes foreach available election strategy from the set of election strategies andfor each available age combination associated with the electionstrategy.

In some embodiments, the election strategy calculation module 220 can beconfigured to calculate each component from a set of components of atotal family benefit for a given election strategy and for a given agecombination, using a present value function. The present value functioncan be, for example, a PVA function or a NPV function. The set ofcomponents can include, for example, components i) to vi) described withrespect to FIG. 2. Then, the election strategy calculation module 220can be configured to sum the set of components to determine the totalfamily benefit for that Social Security election outcome. Additionally,in some embodiments, the comparison module 270 can be configured tocalculate a monetary difference between present values of two SocialSecurity election outcomes. The comparison module 270 can also beconfigured to determine an optimal election strategy from the set ofelection strategies for the married couple.

At 510, the set of Social Security election outcomes can be presented tothe user. In some embodiments, the monetary difference calculated atstep 508, a result associated with the optimal election strategydetermined at step 508, and/or any other results can also be presentedto the user. In the example of FIG. 2, the presentation module 230 canbe configured to receive Social Security election outcomes, thecalculated monetary difference, the determined optimal electionstrategy, and/or other results from the election strategy calculationmodule 220 via signal 203, and/or from the comparison module 270 viasignal 210. The presentation module can then be configured to presentthose results to the user 290 via signal 204.

FIG. 6 is a flow chart illustrating a method 600 of performing a SocialSecurity optimization analysis, according to another embodiment. Such amethod can be performed by a processor of a host device (e.g., theprocessor 122 of the host device 120 in FIG. 1) or a processor of acommunication device (e.g., the processor 162 of the communicationdevice 160 in FIG. 1). For example, a host device can have anon-transitory processor-readable medium, which can store coderepresenting instructions to be executed by the processor of the hostdevice. The stored code can comprise code to cause the processor toperform the following operations.

At 602, an input value can be received from a user at the host device.The input value can be associated with financial information of amarried couple. In some embodiments, the input value can be, forexample, historical Social Security covered earnings, an expectedinflation rate, an AIME value, or a PIA value associated with anindividual or both spouses of the married couple.

In the example of FIG. 2, the input module 260 within the host device200 can be configured to receive input values from the user 290. Theuser 290 can be a representative of a married couple. The user 290 canbe, for example, an individual from the married couple, a relative ofthe married couple, or a financial advisor hired by the married couple.The input values received from the user 290 can be associated with themarried couple, such as, for example, historical Social Security coveredearnings, an expected inflation rate, an AIME value, a PIA value, etc.Some possible input values associated with the married couple areillustrated in the table 310 in FIG. 3.

At 604, election strategies that are available for the married couplecan be identified from a set of election strategies. In someembodiments, each election strategy available for the married couple canbe identified. In other embodiments, a subset of the available electionstrategies can be identified. Furthermore, in some embodiments, the agecombinations (including primary and/or secondary age combinations)available for the married couple within each available election strategycan be determined from a set of age combinations. In some embodiments,the set of age combinations can include primary age combinations and/ora secondary age combinations. In some embodiments, the primary agecombinations can include each Social Security solo electable age for afirst individual from the married couple paired with each SocialSecurity solo electable age for a second individual from the marriedcouple. The secondary age combinations can include, for example, othertypes of election ages at which an individual is eligible to receiveauxiliary Social Security benefits, spousal benefits, and/or the like.

In the example of FIG. 2, the available election strategies from a setof election strategies for the married couple, as well as the availableage combinations associated with each available age combination from aset of age combinations, can be determined at the election strategycalculation module 220 based on data, information and/or calculatedvalues received from the input module 260 and/or the PIA calculationmodule 250. The set of election strategies can include, for example,strategies #1 to #9 described with respect to FIG. 2. The primary agecombinations included in the set of age combinations can include, forexample, each Social Security electable age of 62 to 70 for a firstindividual from the married couple paired with each Social Securityelectable age of 62 to 70 for a second individual from the marriedcouple.

At 606, each component from a set of components of a total familybenefit can be calculated, using the input value, for each SocialSecurity election outcome associated with an available election strategyfrom a set of Social Security election outcomes for the married couple.The components can be calculated using a present value function. In someembodiments, the present value function can be, for example, a PVAfunction or a NPV function. In some embodiments, each component from theset of components can be calculated using at least the input valueand/or a PIA value for each individual from the married couple. In someembodiments, the PIA value can be calculated, using the input value, foreach individual from the married couple. Additionally, in someembodiments, the set of Social Security election outcomes can include aSocial Security election outcome for each available election strategyfrom the set of election strategies for each associated available agecombination from the set of age combinations for the married couple.

In the example of FIG. 2, the election strategy calculation module 220can be configured to calculate each component from a set of componentsof a total family benefit for each Social Security election outcomeassociated with an available election strategy. The components can becalculated using a present value function. The present value functioncan be, for example, a PVA function or a NPV function. The set ofcomponents can include, for example, components i) to vi) described withrespect to FIG. 2. In some embodiments, the AIME calculation module 240can be configured to calculate an AIME value for each individual fromthe married couple using the input value. Similarly, the PIA calculationmodule 250 can be configured to calculate at least a PIA value for eachindividual from the married couple using the input value and thecalculated AIME value. The election strategy calculation module 220 canthen be configured to calculate each component from the set ofcomponents using at least the input value and/or the PIA value. In someembodiments, the set of Social Security election outcomes can include aSocial Security election outcome for each available election strategyfrom the set of election strategies for each associated available agecombination from the set of age combinations for the married couple.

At 608, the set of components of the total family benefit can be summedfor each Social Security election outcome from the set of SocialSecurity election outcomes to determine the total family benefit foreach Social Security election outcome from the set of Social Securityelection outcomes. In the example of FIG. 2, the election strategycalculation module 220 can be configured to sum the set of components todetermine the total family benefit for each Social Security electionoutcome. Thus, the total family benefit for each Social Securityelection outcome from the set of Social Security election outcomes canbe determined at the election strategy calculation module 220.

At 610, the total family benefit for at least one Social Securityelection outcome from the set of Social Security election outcomes canbe presented to the user. In the example of FIG. 2, the presentationmodule 230 can be configured to receive the total family benefit for atleast one Social Security election outcome, and then present thereceived total family benefit for the Social Security election outcometo the user 290 via signal 204.

Some embodiments described herein relate to a computer storage productwith a non-transitory computer-readable medium (also can be referred toas a non-transitory processor-readable medium) having instructions orcomputer code thereon for performing various computer-implementedoperations. The computer-readable medium (or processor-readable medium)is non-transitory in the sense that it does not include transitorypropagating signals per se (e.g., a propagating electromagnetic wavecarrying information on a transmission medium such as space or a cable).The media and computer code (also can be referred to as code) may bethose designed and constructed for the specific purpose or purposes.Examples of computer-readable media include, but are not limited to:magnetic storage media such as hard disks, floppy disks, and magnetictape; optical storage media such as Compact Disc/Digital Video Discs(CD/DVDs), Compact Disc-Read Only Memories (CD-ROMs), and holographicdevices; magneto-optical storage media such as optical disks; carrierwave signal processing modules; and hardware devices that are speciallyconfigured to store and execute program code, such asApplication-Specific Integrated Circuits (ASICs), Programmable LogicDevices (PLDs), Read-Only Memory (ROM) and Random-Access Memory (RAM)devices.

Examples of computer code include, but are not limited to, micro-code ormicro-instructions, machine instructions, such as produced by acompiler, code used to produce a web service, and files containinghigher-level instructions that are executed by a computer using aninterpreter. For example, embodiments may be implemented using Java,C++, or other programming languages (e.g., object-oriented programminglanguages) and development tools. Additional examples of computer codeinclude, but are not limited to, control signals, encrypted code, andcompressed code.

While various embodiments have been described above, it should beunderstood that they have been presented by way of example only, notlimitation, and various changes in form and details may be made. Anyportion of the apparatus and/or methods described herein may be combinedin any combination, except mutually exclusive combinations. Theembodiments described herein can include various combinations and/orsub-combinations of the functions, components and/or features of thedifferent embodiments described.

What is claimed is:
 1. A non-transitory processor-readable mediumstoring code representing instructions to be executed by a processor,the code comprising code to cause the processor to: receive, from auser, an input of at least one value associated with financialinformation of a married couple; calculate, using the at least onevalue, each component from a plurality of components of a total familybenefit for each Social Security election outcome from a plurality ofSocial Security election outcomes for the married couple using a presentvalue function; sum the plurality of components of the total familybenefit for each Social Security election outcome from the plurality ofSocial Security election outcomes to determine the total family benefitfor each Social Security election outcome from the plurality of SocialSecurity election outcomes; and present the total family benefit for atleast one Social Security election outcome from the plurality of SocialSecurity election outcomes to the user.
 2. The non-transitoryprocessor-readable medium of claim 1, further comprising code to causethe processor to: calculate, using the at least one value, an averageindexed monthly earnings (AIME) value and at least one primary insuranceamount (PIA) value for each individual from the married couple, the codeto cause the processor to calculate each component from the plurality ofcomponents including code to cause the processor to calculate eachcomponent from the plurality of components using the at least one value,the AIME value for each individual from the married couple or the atleast one PIA value for each individual from the married couple.
 3. Thenon-transitory processor-readable medium of claim 1, wherein the atleast one value includes at least one of historical Social Securitycovered earnings, an expected inflation rate, an average indexed monthlyearnings (AIME) value, or a primary insurance amount (PIA) value.
 4. Thenon-transitory processor-readable medium of claim 1, wherein theplurality of Social Security election outcomes includes a SocialSecurity election outcome for each election strategy from a plurality ofelection strategies for each age combination from a plurality of agecombinations for the married couple.
 5. The non-transitoryprocessor-readable medium of claim 1, wherein the plurality of SocialSecurity election outcomes includes a Social Security election outcomefor each election strategy from a plurality of election strategies foreach age combination from a plurality of age combinations for themarried couple, the code further comprising code to cause the processorto: select an optimal result for each election strategy from theplurality of election strategies, the code to cause the processor topresent includes code to cause the processor to present the optimalresult for at least one election strategy from the plurality of electionstrategies to the user.
 6. The non-transitory processor-readable mediumof claim 1, further comprising code to cause the processor to: calculatea monetary difference between a present value of a first Social Securityelection outcome from the plurality of Social Security election outcomesand a present value of a second Social Security election outcome fromthe plurality of Social Security election outcomes; and present themonetary difference to the user.
 7. The non-transitoryprocessor-readable medium of claim 1, wherein the present value functionis one of a present value of an annuity (PVA) function or a net presentvalue (NPV) function.